“Many people are naturally entrepreneurial, but the spirit of enterprise can be easily discouraged by government restrictions or a culture of conformity. Many poor countries have suffered from bad government and unnecessary regulations that discourage small-firm formation and growth. The important book Lessons from the Poor provides informative case studies of how good government has fostered entrepreneurship and economic development in some of the poorest countries of the world.”
Description
An important contribution to the literature of economic development, this book presents case studies of productive entrepreneurship in contemporary Africa and Latin America. It looks at the growth of Kenya's chain stores and one-person kiosks, the rise of barter clubs in Argentina, and Nigeria's clothing-design industry to illustrate economists' insights about entrepreneurship and the role that government regulations often play in impeding economic development.
Half the people in the world live on two dollars or less per day and roughly 600 million live on no more than one dollar per day. With thousands of international relief organizations, strategic government programs, and billions of dollars in foreign aid, why do so many underdeveloped countries remain unable to grow their economies beyond mere survival?
It is this issue that internationally acclaimed political analyst Alvaro Vargas Llosa and a select group of economists examine in a series of case studies from around the world. These studies reveal that entrepreneurial energy can be a persistent catalyst for change. But unfortunately in societies dominated by political corruption and unnecessary regulation, men and women seeking to innovate must hurdle a series of challenges. Wealth transfer, favoritism, excessive taxation, and lack of institutional security all conspire against progress. Our contributors examine real world examples of entrepreneurship and argue that instead of redistributing existing wealth, developing countries should start working to create it.
Reviews
“When we think about fighting poverty, we mostly listen to the rich—western businessmen, policymakers and academics. This wonderful, inspiring book gives us the advice from the poor.”
“Lessons from the Poor shows that the mightiest soldiers in the war on poverty are poor people themselves. This fascinating book documents the remarkable creativity and entrepreneurship of the poor, ranging from the family grocer in Kenya that became a supermarket giant to the makers of traditional dyed cloth in the informal sector in Nigeria, who make as much money as corporate managers in the formal sector. The message of the book is profoundly hopeful—as governments remove obstacles to entrepreneurship, there is much potential for the poor to lift themselves out of poverty.”
“Discovering the root causes of poverty in the Third World and attempting to combat them has become a billion-dollar industry in itself. Yet, according to the Independent Institute, international aid efforts may only serve to hinder rather then encourage economic development. Lessons from the Poor: Triumph of the Entrepreneurial Spirit chronicles the successes of Third World entrepreneurs who lifted themselves up from poverty and overcame obstacles (particularly the labyrinth of government regulations) to become successful business owners. . . . Ultimately, as the Independent Institute’s study shows, free enterprise and the extraordinary fortitude and vision of Third World entrepreneurs do play significant roles in alleviating poverty.”